An HOA transfer fee is a typical fee that covers the expenses the association incurs when ownership of the property is transferred from the seller to the buyer in the association’s management company’s records. Such HOA management expenses can include, but are not limited to, document preparation, distribution of the community’s rules and regulations to the new owner, and the handling and copying of the property’s inspection records.
Generally, our real estate closing attorneys review the Offer to Purchase and Contract to determine who is responsible for paying the HOA transfer fees.
According to paragraph 6(b) of the North Carolina Offer to Purchase and Contract, the buyer is responsible for charges by an owner’s association and/or management company for providing information required by the buyer’s lender and fees charged for the buyer’s future use and enjoyment of the property, including “move-in fees.”
According to paragraph 8(j), the seller is responsible to pay any owner’s association fees required to confirm the seller’s payment history and prorations, any fees incurred by the seller in completing disclosure statements and other certificates relating to sale of the property, and fees incurred by Seller in completing the Residential Property and Owners’ Association Disclosure Statement, and resale or other certificates related to a proposed sale of the property.